13.1-561 - Procedure for registration; bond; renewal; fee. - Virginia Statutes

§ 13.1-561. Procedure for registration; bond; renewal; fee.

A. A franchise may be registered after filing with the Commission anapplication containing such relevant information as the Commission mayrequire. The franchise shall be registered if the Commission finds that thefranchisor, including any controlling person of the franchisor, is a personof good character and reputation and that all information required of theapplicant by the Commission has been supplied, that none of the grounds forrevocation enumerated in § 13.1-562 are applicable to the franchise, and thatthe required fee has been paid.

B. The Commission may require, as a condition of registration or renewal ofregistration: (i) the escrow or deferral of franchise fees and other fundspaid by the franchisee to the franchisor until the franchisor's preopeningobligations are fulfilled, if the grounds enumerated in clause (i) ofsubdivision A 2 of § 13.1-562 exist, or (ii) the filing by a franchisor of asurety bond conditioned upon the payment of all criminal and civil penaltiesprovided in this chapter in an amount determined by the Commission to beadequate to protect the public and all franchisees of the franchisor, takinginto proper account the marketing plan or system to be franchised, the goodsor services to be offered, whether or not the franchisor has a regular placeof business in this Commonwealth, and any other facts indicating thenecessary amount of the bond.

C. The Commission shall by rule or order prescribe the procedures for filingan application for exemption, amendments to the exemption, and when anexemption or renewal becomes effective.

D. All registrations, exemptions and renewals thereof shall expire atmidnight on the annual date of their effectiveness. However, the Commissionmay extend such expiration of an exemption as much as 45 days.

E. Each application for the registration or exemption of a franchise shall beaccompanied by a fee of $500, payable to the Treasurer of Virginia. Eachapplication for the renewal of a franchise registration or exemption,including any amendments to the registration or exemption application whichaccompany or are part of the application for renewal, shall be accompanied bya fee of $250 payable to the Treasurer of Virginia. Unless submitted inconnection with an application for renewal, each amendment or group ofamendments to a registration or exemption application submitted after theapplication has been granted shall be accompanied by a fee of $100, payableto the Treasurer of Virginia. If the application for registration, exemptionor renewal is withdrawn or is not granted, or if the registration orexemption application is not amended, the fee shall not be returnable.

F. For the purposes of registration, exemption or renewal of registration ofa franchise, a partnership shall be treated as the same partnership so longas two or more members of the partnership named in the application continuethe business without change of location, and if the partnership, within onemonth after a change in the partnership, files with the Commission a copy ofa certificate filed in compliance with § 50-74.

(1972, c. 561; 1978, c. 670; 1991, c. 475; 1992, c. 158; 2007, c. 668.)